Abstract
D.Comm.
The purpose of this study is to:
Provide a framework to analyse the key drivers of competitiveness within
a cluster2 of industries;
Apply the framework to test the ability of the framework to inform policy
and strategic choices;
Utilise a number of sectoral studies, to draw general conclusions
regarding South Africa's national competitive environment; and
Highlight some policy recommendations that emerge from the analysis of
the national competitive environment. The transformation of political power from the National Party (NP) to the
African National Congress (ANC) involved a revision of priorities for the South
African economy. Different political parties contributed in various formats to
the pre-election economic debate. Among these, the ANC's "Reconstruction
and Development Programme" (RDP) and the Government's "Normative
Economic Model" initially received most attention.
Although both of the above-mentioned policy documents emphasised the
importance of higher economic growth, neither of them elaborated on specific
action initiatives to attain greater economic prosperity. At that stage, the new
Government of National Unity still had to provide the details regarding an
economic programme for reconstruction and development. In view of the
ANC's pre-election promises, it was expected that the development of the
economy, to the benefit of all South Africans, would be one of the new
government's highest priorities during the next two to five years. In this regard,
it was anticipated that an analysis of the international competitiveness of the
South African economy at a macro-economic as well as a more detailed
sectoral level, will be of significant value.
At the outset of this study, early in 1994, the then National Economic Forum
launched the "Global Advantage of South Africa Project" to analyse the
competitiveness of the domestic economy. This study was structured to follow
the approach that was developed by professor Michael Porter in his
competitive analysis of ten nations, as described in his book "The Competitive
Advantage of Nations", as well as subsequent work in this field that had been
done by "The Monitor Company" in a number of countries 3. The Competitive
Advantage of Nations (CAON) approach provides a unique framework to
develop a better understanding of the conditions that govern the competitive ability of firms within a nation. This thesis will attempt to explain and apply the
CAON-thinking and frameworks in the South African context, in an effort to:
provide a reference guide for institutions or individuals that will be
involved in the industrial policy research on competitiveness that needs to
be undertaken during the next few years;
to develop a better understanding of South Africa's competitive platform;
and
to formulate recommendations to enhance the country's international
competitiveness.